There are many advantages to creating a limited liability company when starting any new business enterprise in New York. Those advantages have helped to make that business type a popular one, especially for new entrepreneurs. Since there are some very specific rules that must be followed in any NY LLC formation, however, every would-be owner should learn the various steps involved in the process.
The process usually begins with the name. Each new name must be submitted to the state's Division of Corporations, and must be wholly distinguishable from all existing businesses on file. To help with that process, the state maintains an online database of names that each owner can use to check availability. In addition, every business of this type must have a name that includes the words "limited liability company" or one of the two abbreviated forms: "LLC" or "L. L. C."
The Division also must have Article of Organization on file, laying out the basic details of the enterprise. This document must contain the company's name, county of location, and a valid mailing address. These Articles, along with the required filing fee, can be submitted either online or by regular mail.
New York differs from most states in its requirement that each limited liability company list the State as its Registered Agent rather than legal counsel or other entities. It does so that all legal summons, lawsuits, and similar documents are directed toward the appropriate state agency. That agency then delivers those documents for the company's consideration.
An Operating Agreement must also be created, establishing the rights, liabilities, and obligations of all members of the LLC. This Agreement does not need to be filed with the state, but will have to be created if the owner is to obtain the necessary documentation to complete the formation process.
That step involves obtaining a Certificate of Publication. Sometime within one-hundred and twenty days after the initial registering of this type of enterprise, the owner must have the Operating Agreement published in two newspapers. Alternatively, the entrepreneur can choose to publish some form of notification announcing the LLC's formation. The newspapers then give the owner the necessary Certificate to give to the Division of Corporations.
For tax purposes, companies with two or more members are mandated to acquire an Employer Identification Number. That requirement is not necessary for single-member enterprises, however. In addition, every company should ask about necessary licenses, permits, and any other documentation that might be needed to operate within the jurisdiction. For companies not native to New York, there are additional requirements that may need to be addressed by contacting the Division for more information.
Doing business as an LLC in New York can be a truly rewarding experience for any entrepreneur who has the desire to succeed. As with any business filing, however, it is all too easy to miss the critical details required for commercial activity in any given area. By paying attention to these critical areas of business formation, any new owner should be able to more easily navigate the complexities of establishing this type of new enterprise.
The process usually begins with the name. Each new name must be submitted to the state's Division of Corporations, and must be wholly distinguishable from all existing businesses on file. To help with that process, the state maintains an online database of names that each owner can use to check availability. In addition, every business of this type must have a name that includes the words "limited liability company" or one of the two abbreviated forms: "LLC" or "L. L. C."
The Division also must have Article of Organization on file, laying out the basic details of the enterprise. This document must contain the company's name, county of location, and a valid mailing address. These Articles, along with the required filing fee, can be submitted either online or by regular mail.
New York differs from most states in its requirement that each limited liability company list the State as its Registered Agent rather than legal counsel or other entities. It does so that all legal summons, lawsuits, and similar documents are directed toward the appropriate state agency. That agency then delivers those documents for the company's consideration.
An Operating Agreement must also be created, establishing the rights, liabilities, and obligations of all members of the LLC. This Agreement does not need to be filed with the state, but will have to be created if the owner is to obtain the necessary documentation to complete the formation process.
That step involves obtaining a Certificate of Publication. Sometime within one-hundred and twenty days after the initial registering of this type of enterprise, the owner must have the Operating Agreement published in two newspapers. Alternatively, the entrepreneur can choose to publish some form of notification announcing the LLC's formation. The newspapers then give the owner the necessary Certificate to give to the Division of Corporations.
For tax purposes, companies with two or more members are mandated to acquire an Employer Identification Number. That requirement is not necessary for single-member enterprises, however. In addition, every company should ask about necessary licenses, permits, and any other documentation that might be needed to operate within the jurisdiction. For companies not native to New York, there are additional requirements that may need to be addressed by contacting the Division for more information.
Doing business as an LLC in New York can be a truly rewarding experience for any entrepreneur who has the desire to succeed. As with any business filing, however, it is all too easy to miss the critical details required for commercial activity in any given area. By paying attention to these critical areas of business formation, any new owner should be able to more easily navigate the complexities of establishing this type of new enterprise.
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